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Rowing and the Same-Sum Problem Have Their Moments
Paper by John D. Barrow Abstract: We consider the optimal positioning of an even number of crew members in a coxless racing boat in order to avoid the presence of a sideways wiggle as the boat is propelled forwards through the water. We show that the traditional (alternate port and ...
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Ten Propositions about Liquidity Crises
A liquidity crisis is defined as a sudden and prolonged evaporation of both market and funding liquidity, with potentially serious consequences for the stability of the financial system and the real economy. Market liquidity is defined as the ability to trade an asset or financial instrument ...
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Trichet on the Euro as Reserve Currency
Q: Is the euro set to replace the dollar as a reserve currency? A: The euro was not created to compete with the US dollar or to replace the dollar as international reserve currency. It was created in order to complete the single European market and to bring stability and prosperity to ...
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Starving in the U.S.A.
The number of Americans who lack dependable access to adequate food shot up last year to 49 million, the largest number since the government has been keeping track. Household Food Security in the United States, 2008
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The Crisis Management Menu
From the Bank of England: In a speech opening a conference on ‘Crisis Management at a Cross Roads’ in Brussels today, Paul Tucker – Deputy Governor for Financial Stability and a member of the Monetary Policy Committee – reviews the various components of a crisis management package for ...
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The Debate on the International Monetary System
IMF paper by Isabelle Mateos y Lago , Rupa Duttagupta , and Rishi Goyal The current system has its flaws, including occasionally bouts of serious instability, but it also has proved its strength and resilience when the conceivable alternatives have not. As the pressure points in current ...
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OTC Derivatives Market Activity
Notional amounts of all types of OTC contracts rebounded somewhat to stand at $605 trillion at the end of June 2009, 10% above the level six months before. In contrast, gross market values decreased by 21% to $25 trillion. Similarly, gross credit exposures fell by 18% from an end-2008 peak of ...
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Why Are Banks Holding So Many Excess Reserves?
Why Are Banks Holding So Many Excess Reserves?
aleablog.com — Fed paper by Todd Keister and James McAndrews Why Are Banks Holding So Many Excess Reserves? The quantity of reserves in the U.S. banking system has risen dramatically since September 2008. Some commentators have expressed concern that ... (more) Why Are Banks Holding So Many Excess Reserves?
Complex Systems: From Nuclear Physics to Financial Markets
Paper by J. Spetha , S. Drozdz , and F. Grummer We compare correlations and coherent structures in nuclei and financial markets. In the nuclear physics part we review giant resonances which can be interpreted as a coherent structure embedded in chaos. With similar methods we investigate the ...
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7 Principles for Policy Exit (IMF)
Exit strategies should pave the way for strong, sustained and balanced economic growth. The Principles below are intended to establish common ground for the design and implementation of policies during the exit from the extraordinary support measures taken during the crisis. Principle 1. The ...
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Guidance to Assess the Systemic Importance of Financial Institutions, Markets and Instruments: Initial Considerations
Report to G20 Finance Ministers and Governors The report recognizes that current knowledge and concerns about moral hazard limit the extent to which very precise guidance can be developed. Assessments of systemic importance will necessarily involve a high degree of judgment, they will ...
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On the Informational Properties of Trading Networks
Paper by Lada Adamic, Celso Brunetti, Jeffrey H. Harris, and Andrei A. Kirilenko We apply network analysis to trace patterns of information transmission in an electronic limit order market. If market orders or large executable limit orders are submitted by informed traders, then resulting ...
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Report on the Use of Government-Backed Guarantees to Promote Financial Stability
From the Congressional Oversight Panel The Congressional Oversight Panel’s November oversight report, “Guarantees and Contingent Payments in TARP and Related Programs,” finds that the income of several government-backed guarantee programs will likely exceed their direct ...
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Link of the Day: Thermodynamics Shows US Chief Executives Are Paid 130 Times Too Much
Via Just A Theory : Thermodynamics shows US chief executives are paid nearly 130 times too much Related paper by Venkat Venkatasubramanian : The high pay packages of U.S. CEOs have raised serious concerns about what would constitute a fair pay. Since the present economic models do not ...
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The Determinants of International Flows of U.S. Currency
Paper by Rebecca Hellerstein and William Ryan FRBNY This paper examines the determinants of cross-border flows of U.S. dollar banknotes, using a new panel data set of bilateral flows between the United States and 103 countries from 1990 to 2007. We show that a gravity model explains ...
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